Business
Sprott Inc. announces 2010 first quarter results
Sprott Inc. announces 2010 first quarter results
About this update from Sprott Inc.
[{"type":"text","content":"\n\n\n\n May 12, 2010 (Canada NewsWire Group) -- Sprott Inc. (TSX: SII) ("Sprott" or the "Company") today announced its financial results for the three-month period ended March 31, 2010.\n\n\n >\n\n\n"During the first quarter of 2010, we continued to focus on broadening our fund lineup through the introduction of innovative new products," said Eric Sprott, CEO of Sprott Inc. "In the first three months of the year, we successfully launched two new funds: the Sprott Physical Gold Trust and the Sprott 2010 Flow-Through Limited Partnership. Together, these funds have increased our AUM by more than $400 million. We are very pleased with the interest the Sprott Physical Gold Trust has generated and it is currently trading at a substantial premium to NAV. We will consider a follow-on offering in the near future to keep pace with investors' appetite for a product fully backed by physical gold. Subsequent to the end of the first quarter, in April 2010, we introduced the Sprott Private Credit Fund, which will be sub-advised by Third Eye Capital Management Inc., a leading investor in privately-managed secured loans."\n"We also added to our depth at the senior management level for SAM during the quarter, with the appointment of John Ciampaglia as Chief Operating Officer. John is an accomplished investment industry professional who, in his new role, will focus on both new product development and improving the operational effectiveness of our organization," added Mr. Sprott. "Our investment performance was mixed during the quarter, with the Sprott Energy Fund delivering the best result, posting a return of almost 10%. We are well positioned to potentially return to generating performance fees through the remainder of the year."\n\n\n >\n\n\nFor the quarter ended March 31, 2010, AUM increased to $5,155 million, compared to $4,725 million at March 31, 2009. During the quarter, the market value of portfolios declined by $36 million, while net sales totaled $417 million, resulting in a $381 million increase in AUM. The majority of the net sales during the quarter came from the launch of two new funds, the Sprott 2010 Flow-Through Limited Partnership and the Sprott Physical Gold Trust, which raised $51 million and $441 million, respectively. Net redemptions of all other funds totaled $75 ...